AMD cuts forecast amid soft PC demand
U.S. chipmaker Advanced Micro Devices Inc. lowered its revenue estimate for the second quarter, below analysts' average expectation, saying the demand for personal computers was weaker than expected. AMD's shares fell as much as 15 percent to $2.10 in extended trading, after the company also cut its adjusted gross margin forecast for the quarter ended June 27. The company said it expects revenue to have decreased about 8 percent from the first quarter, compared with its previous forecast of down 3 percent, plus or minus 3 percent. This implies revenue of about $948 million. Analysts were expecting $999.6 million, according to Thomson Reuters. The Sunnyvale, Calif.-based company also cut its forecast for second-quarter adjusted gross margin to about 28 percent.
Service sector growth accelerated in June
U.S. service firms grew at a slightly faster pace in June, as business activity and new orders increased. The Institute for Supply Management said its services index edged up to 56 in June from 55.7 in May. Any reading over 50 indicates that services firms are expanding. Steady hiring over the past year has fueled a consumer spending rebound from a winter slump. Many economists say the economy will expand at an annual rate of 2.5 percent in the second quarter, after shrinking during the first three months of 2015. Still, the index's hiring component slipped in June to 52.7 from 55.3 in May, which indicates that the rate of job growth might slow.
Buffett gives more of his fortune to charity
Warren Buffett donated about $2.84 billion of Berkshire Hathaway Inc. stock to the Bill and Melinda Gates Foundation and four family charities, as part of the billionaire's plan to give away nearly all of his wealth. The 10th annual donation, Buffett's largest, comprised 20.64 million Class B shares of Berkshire, and increased Buffett's total contributions to the charities to more than $21.5 billion. The Gates Foundation, which focuses on improving education and health and reducing poverty, received about 15.76 million shares, or 76 percent of the total donated.
American Apparel plans closings, job cuts
Struggling retailer American Apparel Inc. is laying off workers and closing some stores as part of an ongoing effort to turn around its business. The Los Angeles clothing maker said the initiatives will save the company about $30 million over the next year and a half. American Apparel did not disclose the number of stores or jobs that will be cut. It also did not say whether the layoffs, which will begin immediately, will affect employees at stores or at its factories. The company employs about 10,000 workers worldwide, with about 4,600 manufacturing and office workers in Southern California.
Sandberg to join board of SurveyMonkey
SurveyMonkey will add two new members to its board of directors, including Facebook's chief operating officer, Sheryl Sandberg. Sandberg is the widow of David Goldberg, who was CEO at SurveyMonkey from 2009 until he died in May. The Palo Alto, Calif., company said its other new director is David Ebersman, the CEO of Lyra Health and former chief financial officer at Facebook. SurveyMonkey, which operates an online survey platform, also said Zander Lurie, its acting executive chairman, will take on the role on a permanent basis..
GoPro unveils its smallest camera yet
GoPro, the sports camera maker, plans to launch its smallest camera yet. The Hero4 Session, which weighs 2.6 ounces, will go on sale Sunday, the company said. The lightest camera it currently sells on its website is the Hero4 Silver at 2.9 ounces. While it weighs less, the new camera hasn't shrunk in price: The Hero4 Session will retail for $399.99, about the same price as previous models.